Answer:
Accumulated Depreciation As of December 31, 2010 = $105,000
Explanation:
Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.
Annual depreciation:
= (cost of assets - salvage value)/ 5 years
= (180,000 -30,000)/5
=.$30,000
From July 1 2007 to December 31 2010 = 3 years 6 months = 42 months
So total accumulated depreciation at the end of 3 years 6 months :
= ( 30,000/12) × 42
= $105,000
Accumulated Depreciation As of December 31, 2010 = = $105,000
